Liverpool taxi firm wins landmark Supreme Court appeal over Uber
Delta Taxis wins battle over VAT rules
Last updated 29th Jul 2025
Private hire taxi firms across England and Wales will not be forced to add VAT to fares, following a landmark Supreme Court ruling that rejected Uber’s attempt to standardise business models in the industry.
The decision ends a long-running legal dispute between ride-hailing giant Uber and Liverpool-based DELTA Taxis, a case with wide-reaching implications for passengers, drivers, and private hire operators.
Uber had argued that all firms should be required to contract directly with passengers, which would automatically trigger a 20% VAT charge on every fare — a change that private hire companies warned would have “seismic consequences” for both operators and passengers.
The Supreme Court dismissed Uber’s appeal and confirmed that private hire companies can continue to use a variety of lawful operating models — including the so-called agency model — without being required to contract directly with passengers.
As a result, thousands of journeys across England and Wales will not be subject to sudden fare increases, preserving access to affordable transport.
DELTA Taxis, represented by legal firm Aaron & Partners, successfully challenged Uber’s interpretation of the law. They argued that the current legislation, dating back to 1976, allows for multiple private hire structures — some of which do not require VAT registration.
Layla Barke Jones, Dispute Resolution Partner at Aaron & Partners, said the outcome is a major win for consumers and for small firms across the country:
“This is a monumental decision, not just for DELTA, but for all private hire taxi drivers and operators across England and Wales. Had this gone the other way, the cost and complexity of implementing VAT systems would have pushed many firms to the brink.
“This ruling ensures that operators can continue to operate under established, regulated models that have been in existence since regulation was introduced almost half a century ago – such as the agency model – without being forced into a ‘one size fits all’ model.”
Uber had previously lost a similar case in London in 2022 and was attempting to extend the consequences of that judgment nationwide. The company was seeking a legal declaration that would have had the effect of making their competitors’ business models unlawful — a move that would effectively level the playing field by imposing VAT on all operators.
But the Court of Appeal reversed an earlier High Court decision in July 2024, and this latest Supreme Court ruling now cements that outcome as the final legal position.
Layla Barke-Jones from the legal team representing DELTA, warned the case had implications far beyond legal technicalities, with real-world impacts for vulnerable people:
“Private hire firms are vital in the communities, and are used frequently by those with disabilities, low-income households and older people who rely on taxis for essential journeys and to maintain their independence.
“If VAT suddenly had to be paid by all those people, the additional cost would have meant many simply choose not to travel at all, leaving some of the most vulnerable people in our society isolated.
“A crisis has been averted. This ruling protects the freedom to operate and the right of communities to access affordable, reliable transport.”